Asian stocks mixed as investors grapple with higher rates

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Investors turn negative on stocks and bonds following the US Fed’s hawkish monetary outlook.

The Federal Reserve’s higher-for-longer rate projection sent benchmark 10-year Treasury rates to their highest level in 16 years.

Profits at China’s industrial firms fell 11.7% in the first eight months from a year earlier, official data showed on Wednesday. In Australia, inflation picked up in August, driven by a surge in fuel prices, but the gain was in line with expectations.Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.1%. The index is down 3.7% so far this month. US stock futures, the S&P 500 e-minis, were up 0.13%.China’s blue-chip CSI300 index was 0.

The Dow Jones Industrial Average fell 1.14%, the S&P 500 lost 1.47% and the Nasdaq Composite dropped 1.57%. The 150 yen per dollar level is seen by financial markets as a red line that would spur Japanese authorities to act, as they did last year.

 

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